Labor shortage in India’s call centers could hurt service, Gartner says
Online retailers that outsource customer service or marketing to call centers in India could soon face higher costs, lower quality service and security problems, according to a new report from Gartner Inc.
Call centers in India are experiencing problems in recruiting and retaining qualified staff due to the growing demand for their services from companies in the U.S. and Europe, Gartner says. The government of India estimates that the need for trained and qualified call center staff will reach 1 million by 2009, with an expected shortfall of more than 260,000 workers.
“Despite denials from some Indian organizations, the paucity of trained and skilled personnel is a reality,” Gartner says.
Although more than 2.5 million students in India graduate from college every year, many don’t have good English-language skills, Gartner says. As a result, call centers competing for the limited pool of qualified graduates will have to increase salaries and benefits, leading to higher costs.
In addition, after the top available candidates are absorbed by the industry, Indian call centers will be forced to hire less-qualified individuals. Unless the centers invest in high-quality, in-house training—further raising costs—service quality could deteriorate, Gartner says.
Call centers rushing to meet recruitment deadlines also might not vet out candidates thoroughly and end up hiring individuals that pose a security threat, increasing the risk of fraud, Gartner says.
Gartner recommends that organizations investigating outsourcing to call centers in India ask about attrition rates and security measures. It also suggests that companies build into their call center contracts mechanisms such as service level agreements and penalties, call monitoring and customer-satisfaction surveys.
Back...
